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Council authorizes amendments for 5‑Star/Ritz‑Carlton inspections; staff flags outstanding invoices
Summary
Council approved amendments to third‑party plan‑review and inspection agreements for the 5‑Star development and related owner entities, and staff reported an outstanding reimbursement invoice of about $31,000; council approved the amendments and directed staff to monitor payment and legal options.
The council on June 11 approved amendments to professional services agreements with Brown & Associates and to inspection agreements tied to the 5‑Star/Ritz‑Carlton development to keep third‑party plan review and inspection services available should the project resume active construction.
Community Development staff explained the amendments are precautionary: if the project calls for services the town must be positioned to provide plan review and inspection. Staff also disclosed that Brown & Associates had outstanding invoices, including an April invoice of roughly $31,000 that had not yet been paid; staff said a second invoice of about $10,000 had been sent on June 3 and that historically the firm has ultimately brought accounts current.
Council members asked about inspection volume and whether the town would halt inspections if reimbursements were not forthcoming. Town Attorney explained typical practice: the town may halt inspections when a developer or contractor becomes persistently delinquent, although the bankruptcy and debtor-in-possession arrangements in the project’s financing chain complicate the timing and enforcement. Staff said they would continue collection efforts and monitor the payment cadence while ensuring necessary inspections occur.
The council authorized Amendment 9 to Brown & Associates’ professional services agreement and Amendment 8 to the third‑party inspection agreement with the development owners to remain ready should development activity resume. Councilmember Moore asked staff to provide a status update on payments and outline recourse should reimbursements fall further behind.
What’s next: Staff will report back on invoice collection efforts and, if necessary, options for pausing services or other remedies consistent with the development agreement and bankruptcy proceedings.
